Meme coin boom sees massive influx of new traders

MIM digital currencies, such as Dogecoin (DOGE) and Shiba Inu )SHIB), a massive influx of new traders over the past month. This happened at the same time as the return of the so-called “meme craze,” which caused their prices to rise sharply.

And in a report The new blockchain data analysis platform “IntoTheBlock” has indicated that the number of new investors in this digital currency sector, i.e. those who have owned their coins for less than 30 days, has reached a record level last month.

The attached chart shows that the number of traders in meme currencies has reached very high levels. Dogecoin, the largest in terms of market capitalization, contributed the most to this rise.

“This indicates a massive influx of new traders to purchase meme coins,” the analytics firm added.

Read also: As 'Doge Day' Approaches: Dogecoin Futures Volumes Soar at 2 Billion and Price Expectations Continue to Rise

Even though the number of traders has decreased significantly since this peak, this does not necessarily mean that new traders who recently entered the market have already sold their assets. Some of them may have purchased their currencies more than 30 days ago, which explains the drop in numbers.

However, the index trend indicates a decline in the influx of new traders into the market compared to last month.For Dogecoin DOGE Especially a notable drop in this context.

Increase in the number of transactions on the same coins

The second chart shows data on the total number of virtual currency transactions. As expected, the number of transactions also increased as the influx of new traders reached an all-time high.

The arrival of new investors means more activity for these networks, which in turn leads to a higher total number of moves.

However, as the influx of new users has subsided, trading activity for meme coins has also declined recently, indicating a decline in traders' interest in multiple transactions via Blockchain networks NOW.

Historically, prices exhibit significant volatility as trading activity increases, making it important to track the number of transactions, as any sudden increase could indicate the potential for a large price movement (the price could move in a direction or the other).

Data from IntoTheBlock also shows that the total market capitalization of meme coins (i.e. the total market value of assets in circulation) has reached a new high of $56 billion.